[Federal Register Volume 85, Number 114 (Friday, June 12, 2020)]
[Notices]
[Pages 35900-35902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12752]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-118]


Wood Mouldings and Millwork Products From the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of wood mouldings and millwork products (millwork products) 
from the People's Republic of China (China). The period of 
investigation is January 1, 2019 through December 31, 2019. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable June 12, 2020.

FOR FURTHER INFORMATION CONTACT: Irene Gorelik or Faris Montgomery, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-6905 or (202) 
482-1537, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 5, 
2020.\1\ On March 12, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
June 8, 2020.\2\ For a complete description of the events that followed 
the initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at http://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
---------------------------------------------------------------------------

    \1\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Initiation of Countervailing Duty Investigation, 
85 FR 6513 (February 5, 2020) (Initiation Notice).
    \2\ See Wood Mouldings and Millwork Products from the People's 
Republic of China: Postponement of Preliminary Determination of 
Antidumping Duty Investigation, 85 FR 15433 (March 12, 2020).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Wood 
Mouldings and Millwork Products from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are millwork products 
from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce intends to issue its preliminary 
decision regarding comments concerning the scope of the antidumping 
(AD) and countervailing (CVD) investigations of millwork products from 
Brazil and China with the preliminary determinations of the AD 
investigations.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
---------------------------------------------------------------------------

    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------

    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of millwork 
products from China based on a request made by the petitioner.\8\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled to be 
issued no later than October 19, 2020, unless postponed.
---------------------------------------------------------------------------

    \8\ See Petitioner's Letter, ``Request to Align Countervailing 
Duty Investigation Final Determination with Antidumping Duty 
Investigation Final Determination,'' dated May 4, 2020.
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. In this investigation, as discussed in the Preliminary 
Decision Memorandum, Commerce preliminarily assigned a rate based 
entirely on facts available to Fujian Nanping Yuanqiao Wood-Industry 
Co., Ltd. Therefore, the only preliminary rate that is not zero, de 
minimis or based entirely on facts otherwise available is the rate 
calculated for Fujian Yinfeng Imp & Exp Trading Co., Ltd. (Yinfeng). 
Consequently, the preliminary rate calculated for Yinfeng is also 
assigned as the preliminary rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:
---------------------------------------------------------------------------

    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce determines that Yinfeng Fujian Province Youxi City Mangrove 
Wood Machining Co., Ltd. and Fujian Province Youxi City Mangrove 
Wood Machining Co., Ltd., Xicheng Branch are cross-owned affiliates 
of mandatory respondent Yinfeng.

[[Page 35901]]



------------------------------------------------------------------------
                                                                Subsidy
                           Company                                rate
                                                               (percent)
------------------------------------------------------------------------
Fujian Yinfeng Imp & Exp Trading Co., Ltd \9\................      13.61
Fujian Nanping Yuanqiao Wood-Industry Co., Ltd...............     245.34
All Others...................................................      13.61
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than seven days after the deadline 
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
---------------------------------------------------------------------------

    \10\ See, generally, 19 CFR 351.309 and 19 CFR 351.303 (for 
general filing requirements). See also Temporary Rule Modifying AD/
CVD Service Requirements Due to COVID-19, 85 FR 17006 (March 26, 
2020) and Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will make its final 
determination before the later of 120 days after the date of this 
preliminary determination or 45 days after Commerce's final 
determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 8, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to this investigation consists of wood 
mouldings and millwork products that are made of wood (regardless of 
wood species), bamboo, laminated veneer lumber (LVL), or of wood and 
composite materials (where the composite materials make up less than 
50 percent of the total merchandise), and which are continuously 
shaped wood that undergoes additional manufacturing or finger-
jointed or edge-glued moulding or millwork blanks (whether or not 
resawn).
    The percentage of composite materials contained in a wood 
moulding or millwork product is measured by length, except when the 
composite material is a coating or cladding. Wood mouldings and 
millwork products that are coated or clad, even along their entire 
length, with a composite material, but that are otherwise comprised 
of wood, LVL, or wood and composite materials (where the non-coating 
composite materials make up 50 percent or less of the total 
merchandise) are covered by the scope.
    The merchandise subject to this investigation consists of wood, 
LVL, bamboo, or a combination of wood and composite materials that 
is continuously shaped throughout its length (with the exception of 
any endwork/dados), profiled wood having a repetitive design in 
relief, similar milled wood architectural accessories, such as 
rosettes and plinth blocks, and finger-jointed or edge-glued 
moulding or millwork blanks (whether or not resawn). The scope 
includes continuously shaped wood in the forms of dowels, building 
components such as interior paneling and jamb parts, and door 
components such as rails and stiles.
    The covered products may be solid wood, laminated, finger-
jointed, edge-glued, face-glued, or otherwise joined in the 
production or remanufacturing process and are covered by the scope 
whether imported raw, coated (e.g., gesso, polymer, or plastic), 
primed, painted, stained, wrapped (paper or vinyl overlay), any 
combination of the aforementioned surface coatings, treated, or 
which incorporate rot-resistant elements (whether wood or 
composite). The covered products are covered by the scope whether or 
not any surface coating(s) or covers obscures the grain, textures, 
or markings of the wood, whether or not they are ready for use or 
require final machining (e.g., endwork/dado, hinge/strike machining, 
weatherstrip or application thereof, mitre) or packaging.
    All wood mouldings and millwork products are included within the 
scope even if they are trimmed; cut-to-size; notched; punched; 
drilled; or have undergone other forms of minor processing.
    Subject merchandise also includes wood mouldings and millwork 
products that have been further processed in a third country, 
including but not limited to trimming, cutting, notching, punching, 
drilling, coating, or any other processing that would not otherwise 
remove the merchandise from the scope of the investigation if 
performed in the country of manufacture of the in-scope product.
    Excluded from the scope of this investigation are exterior 
fencing, exterior decking and exterior siding products (including 
solid wood siding, non-wood siding (e.g., composite or cement), and 
shingles) that are not LVL or finger jointed; finished and 
unfinished doors; flooring; parts of stair steps (including newel 
posts, balusters, easing, gooseneck, risers, treads and rail 
fittings); and picture frame components three feet and under in 
individual lengths.
    Excluded from the scope of this investigation are all products 
covered by the scope of the antidumping and countervailing duty 
orders on Hardwood Plywood from the People's Republic of China. See 
Certain Hardwood Plywood Products from the People's Republic of 
China: Amended Final Determination of Sales at Less Than Fair Value, 
and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain 
Hardwood Plywood Products from the People's Republic of China: 
Countervailing Duty Order, 83 FR 513 (January 4, 2018).

[[Page 35902]]

    Excluded from the scope of this investigation are all products 
covered by the scope of the antidumping and countervailing duty 
orders on Multilayered Wood Flooring from the People's Republic of 
China. See Multilayered Wood Flooring from the People's Republic of 
China: Amended Final Determination of Sales at Less Than Fair Value 
and Antidumping Duty Order, 76 FR 76690 (December 8, 2011); 
Multilayered Wood Flooring from the People's Republic of China: 
Countervailing Duty Order, 76 FR 76693 (December 8, 2011).
    Imports of wood mouldings and millwork products are primarily 
entered under the following Harmonized Tariff Schedule of the United 
States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500, 
4409.10.5000, 4409.22.4000, 4409.22.5000, 4409.29.4100, and 
4409.29.5100. Imports of wood mouldings and millwork products may 
also enter under HTSUS numbers: 4409.10.6000, 4409.10.6500, 
4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095 
and 4421.99.9780. While the HTSUS subheadings are provided for 
convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Alignment
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2020-12752 Filed 6-11-20; 8:45 am]
 BILLING CODE 3510-DS-P